Risk Management and Liquidation Logic
To maintain platform-wide stability, QuBitDEX automatically triggers a liquidation process when your margin balance falls below the required threshold:
Partial Liquidation: The system attempts to reduce risk by closing a portion of your position
Full Liquidation: If your risk ratio remains too high, your entire position will be closed
In the future, QuBitDEX plans to integrate AI-powered tools for position scoring and risk alerts, helping users better manage exposure:
How close your position is to liquidation
Whether you need to add margin or reduce exposure
Real-time risk assessment of your current strategy
🧠 Example
You open a long ETH position using 5x leverage, with 200 USDT as margin to control a 1,000 USDT position.
If ETH increases by 10%, you earn 100 USDT (+50%)
If ETH drops by 10%, you lose 100 USDT (–50%)
If the price keeps falling and your margin is exhausted, your position is forcibly closed and the remaining margin is used to cover losses
Summary
Perpetual contracts are powerful but high-risk instruments. At QuBitDEX, we aim to hide the complexity behind intuitive design, making leveraged trading simpler, safer, and more user-controlled.
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